ANALYSIS OF BANKING DEPOSIT COST IN THE DYNAMICS OF LOAN: BIFURCATION AND CHAOS PERSPECTIVES

A dynamic model of banking loan based on the gradient adjustment process is presented. The amount of loan that will be channeled in the future depends on the sign of the marginal profit of loan. In this paper, we study the deposit cost in the dynamics of a bank’s loan using bifurcation theory. The a...

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Main Authors: Moch. Fandi Ansori, Susilo Hariyanto
Format: Article
Language:English
Published: Universitas Pattimura 2022-12-01
Series:Barekeng
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Online Access:https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/6259
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author Moch. Fandi Ansori
Susilo Hariyanto
author_facet Moch. Fandi Ansori
Susilo Hariyanto
author_sort Moch. Fandi Ansori
collection DOAJ
description A dynamic model of banking loan based on the gradient adjustment process is presented. The amount of loan that will be channeled in the future depends on the sign of the marginal profit of loan. In this paper, we study the deposit cost in the dynamics of a bank’s loan using bifurcation theory. The analysis shows that the deposit cost can affect the stability of loan equilibrium. If the deposit cost is too high, then the loan equilibrium can lose its stability trough transcritical bifurcation. Meanwhile, if the deposit cost is too low, then the loan equilibrium may lose its stability via flip bifurcation and road to chaos. The loan equilibrium stable if the deposit cost is in between the bifurcation values. These findings are confirmed by the numerical simulations. In addition, we present the graph of Lyapunov exponent to see the existence of chaos and the graph of chaotic loan that is sensitive to the initial condition.
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publishDate 2022-12-01
publisher Universitas Pattimura
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spelling doaj-art-950d1abcc3c348b5aa199b9da91696de2025-08-20T03:36:12ZengUniversitas PattimuraBarekeng1978-72272615-30172022-12-011641283129210.30598/barekengvol16iss4pp1283-12926259ANALYSIS OF BANKING DEPOSIT COST IN THE DYNAMICS OF LOAN: BIFURCATION AND CHAOS PERSPECTIVESMoch. Fandi Ansori0Susilo Hariyanto1Department of Mathematics, Faculty of Science and Mathematics, Universitas DiponegoroDepartment of Mathematics, Faculty of Science and Mathematics, Universitas DiponegoroA dynamic model of banking loan based on the gradient adjustment process is presented. The amount of loan that will be channeled in the future depends on the sign of the marginal profit of loan. In this paper, we study the deposit cost in the dynamics of a bank’s loan using bifurcation theory. The analysis shows that the deposit cost can affect the stability of loan equilibrium. If the deposit cost is too high, then the loan equilibrium can lose its stability trough transcritical bifurcation. Meanwhile, if the deposit cost is too low, then the loan equilibrium may lose its stability via flip bifurcation and road to chaos. The loan equilibrium stable if the deposit cost is in between the bifurcation values. These findings are confirmed by the numerical simulations. In addition, we present the graph of Lyapunov exponent to see the existence of chaos and the graph of chaotic loan that is sensitive to the initial condition.https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/6259deposit costflip bifurcationtranscritical bifurcationchaos
spellingShingle Moch. Fandi Ansori
Susilo Hariyanto
ANALYSIS OF BANKING DEPOSIT COST IN THE DYNAMICS OF LOAN: BIFURCATION AND CHAOS PERSPECTIVES
Barekeng
deposit cost
flip bifurcation
transcritical bifurcation
chaos
title ANALYSIS OF BANKING DEPOSIT COST IN THE DYNAMICS OF LOAN: BIFURCATION AND CHAOS PERSPECTIVES
title_full ANALYSIS OF BANKING DEPOSIT COST IN THE DYNAMICS OF LOAN: BIFURCATION AND CHAOS PERSPECTIVES
title_fullStr ANALYSIS OF BANKING DEPOSIT COST IN THE DYNAMICS OF LOAN: BIFURCATION AND CHAOS PERSPECTIVES
title_full_unstemmed ANALYSIS OF BANKING DEPOSIT COST IN THE DYNAMICS OF LOAN: BIFURCATION AND CHAOS PERSPECTIVES
title_short ANALYSIS OF BANKING DEPOSIT COST IN THE DYNAMICS OF LOAN: BIFURCATION AND CHAOS PERSPECTIVES
title_sort analysis of banking deposit cost in the dynamics of loan bifurcation and chaos perspectives
topic deposit cost
flip bifurcation
transcritical bifurcation
chaos
url https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/6259
work_keys_str_mv AT mochfandiansori analysisofbankingdepositcostinthedynamicsofloanbifurcationandchaosperspectives
AT susilohariyanto analysisofbankingdepositcostinthedynamicsofloanbifurcationandchaosperspectives